Now Reading: Centre: No Policy Bars Airport Operators From Owning Airlines
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Centre: No Policy Bars Airport Operators From Owning Airlines
The Union government on Monday said there is no policy barring major airport operators from holding equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol told the…
The Story in Brief
The Union government on Monday said there is no policy barring major airport operators from holding equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol told the Rajya Sabha that the Airports Authority of India (AAI) has received a request seeking a waiver of contractual restrictions that limit such cross-ownership. The civil aviation ministry has not yet examined the proposal. The Economic Times reports that Adani Airport Holdings sought the waiver, though Adani Enterprises called the report baseless. IndiGo co-founder Rahul Bhatia has warned that cross-ownership would create a 'massive conflict of interest' harmful to consumers.
The Indian Opinion
No policy bar exists, but a waiver request sits unexamined. The narrative pits competition against conflict of interest. Supporters say relaxing curbs could break the IndiGo-Air India duopoly that controls 90% of the market. Opponents fear airport operators would hoard prized slots, squeezing rivals. The real test will be whether the Competition Commission of India weighs in before the Cabinet takes a call. Will a waiver create fairer skies or just a new monopoly? Watch for the government's detailed response to the request.
Sources (2): timesnownews.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
